Phoenix-based CompTronics manufactures audio speakers for desktop computers. The following data relate to the period just ended when the company produced and sold 43,000 speaker sets:

Sales $ 3,612,000

Variable costs 903,000

Fixed costs 2,250,000

Management is considering relocating its manufacturing facilities to northern Mexico to reduce costs. Variable costs are expected to average $16.00 per set; annual fixed costs are anticipated to be $1,992,000. (In the following requirements, ignore income taxes.)

2. Determine the break-even point in speaker sets if operations are shifted to Mexico. (Do not round intermediate calculations and round your final answer up to nearest whole number.)

Breakeven point_____units?

3. Assume that management desires to achieve the Mexican break-even point; however, operations will remain in the United States.

a. If variable costs remain constant, by how much must fixed costs change? (Round your final answer to nearest whole dollar.)

Fixed costs_____by_____?

b. If fixed costs remain constant, by how much must unit variable cost change? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Variable costs_____by_____per unit?